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well this is awkward

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phillthy

123 Posts.

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25/11/20

00:57

Post #: 49117467
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Originally posted by KelpieInvestor: ↑

Id love to know who the tier 1 lender is. Id be shocked if it was one of the big 4. If it was though.. it would suggest their business proposal is solid.

Macquarie bank have much more of a risk appetite. My money is on Macquarie.

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Originally posted by mattstambe: ↑

Hi Mooroolbark -

Lets look at cold light of day facts:

Aurora have a take-off agreement with CAN
CAN are hoping to use the revenue stream of this take-off agreement to securitise a bank loan to build a cultivation facility
Aurora have terminated construction of their new facilities as they already have surplus cultivation
Aurora has lots of surplus stock every quarter that they can not sell (They cultivate > 3x what they can sell currently)

Bank's lend money when they are confident they will get repaid
CAN are relying on Aurora to buy their cannabis so that CAN can pay bank interest
Aurora have no need for more cannabis so will not buy it
CAN can therefore no longer pay bank loan interest
CAN can therefore no longer secure bank loan
CAN can therefore no longer build the Mildura facility

As I said - the probability of the bank approving the loan is between zero and none.

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well this is awkward
CAN Price at posting: 50.5¢ Sentiment: Hold Disclosure: Held
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